Ukraine prohibits its citizens from buying Bitcoin (BTC) in local currency

Ukraine limits the purchase of Bitcoin

According to a statement from the National Bank of Ukraine (NBU) published this Thursday, April 21, it will now be impossible for Ukrainian citizens to buy cryptocurrency in hryvnia, the local currency.

In the context of martial law extended on March 26, the central bank wishes limit the risk of capital outflows from the country. According to the statement, Ukrainian citizens will still be able to buy cryptocurrency in foreign currency without exceeding 100,000 hryvnias monthlyor about $3,400.

The ban on the purchase of cryptocurrencies remains a priori temporaryaccording to the press release:

“These relevant changes will help improve the foreign exchange market, which is a necessary prerequisite for easing restrictions in the future, as well as reducing the pressure on Ukraine’s international reserves. »

Thus, according to the NBU, purchases in cryptocurrencies are equated with “ quasi-monetary transactions in the same way as foreign exchange transactions, deposits in electronic wallets and payments for travel.

“Cash-like transactions […] are mainly carried out to circumvent the current restrictions of the National Bank, in particular to invest abroad, which is prohibited by martial law. Therefore, the transactions concerned should be interpreted as causing outflows of unproductive capital.”

While the Russian-Ukrainian conflict is still topical, the NBU was able to observe that the equivalent of $1.7 billion had been transferred out of the country’s banks in the month of March aloneand no less than 900 million dollars for the month of April still in progress.

👉Find our guide to buy Bitcoin (BTC)

Cryptocurrencies to the rescue of Ukraine

This announcement of restrictions on the purchase of cryptocurrencies comes barely a month after Ukrainian President Zelesnsky signed a law favorable to the adoption and supervision of the latter.

Indeed, this law dedicated to digital assets had among other things a special legal status for themor even creating a list of digital asset providers in view of register them with the National Bank of Ukraine as well as the National Securities and Stock Market Commission.

Also, since Ukraine declared that it was accepting cryptocurrency donations on February 26, these have considerably increased, to the point of today exceeding 100 million dollarsaccording to a recent Financial Times survey.

Many figures in the cryptocurrency world have lent their support to Ukraine during this conflict. We could in particular cite the association of FTX and Everstake leading to the creation of “Aid For Ukraine”a site dedicated to donations of digital assets, or the donation of $1 million from the Bored Ape Yacht Club (BAYC) at the beginning of last March.

Cryptocurrency donations are widely requested, as they enable transactions very fast and without intermediaryunlike the traditional banking system which can sometimes represent an obstacle.

👉 To read on the same subject: Ukraine relies on a sale of non-fungible tokens (NFT) to rebuild its cultural sites

Source: National Bank of Ukraine

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About the Author : Maximilien Prue

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Passionate about the world of decentralized finance and the novelties brought by Web 3.0, I write articles for Cryptoast to help make the blockchain more accessible to everyone. Convinced that cryptocurrencies will change the future very soon.
All articles by Maximilien Prué.

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